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White House press secretary Levitt: Trump has no plans to fire Fed chair
ByAinvest
Monday, Jul 21, 2025 3:26 pm ET1min read
White House press secretary Levitt: Trump has no plans to fire Fed chair
In a recent development, President Donald Trump hinted at the possibility of replacing Federal Reserve Chairman Jerome Powell. Speaking to reporters after a trip to Pittsburgh, Trump suggested that Treasury Secretary Scott Bessent could be a potential successor to Powell. However, Trump later clarified that he was not seriously considering this option due to his satisfaction with Powell's performance [1].Trump's frustration with Powell has been growing, particularly over the Federal Reserve's reluctance to lower interest rates. Trump has cited the Fed's $2.5 billion renovation cost overrun as a reason to remove Powell, but legally, a Fed Chair cannot be removed over policy disagreements [2].
Powell's appointment timeline is well-defined. He was first appointed by Trump and later reappointed by President Joe Biden. His term as Chair is set to end in May 2026, though he could remain at the Fed as a governor until January 2028 [3].
The Federal Reserve has maintained interest rates between 4.25% and 4.5% to combat high inflation and low unemployment. Recent data shows that U.S. consumer prices rose 0.3% in June, equivalent to a 3.5% annual rate [4].
In addition to Bessent, former Fed Governor Kevin Warsh and Trump's top economic adviser, Kevin Hassett, are also being considered to replace Powell. Trump's team is initiating a search process to identify potential successors well before the 2026 deadline [5].
Scott Bessent has called for clarity post-2026, noting that it would be confusing for Powell to stay on after his term as Chair ends in 2026, even if he is legally permitted to stay as a governor until 2028 [6].
The Trump administration maintains that upcoming tax legislation will boost private investment and stimulate the economy, despite acknowledging that tariffs might create short-term price spikes [7].
In a separate development, President Trump plans to fire Federal Reserve Chairman Jerome Powell "soon," according to a White House official. However, the White House press secretary, Levitt, has stated that Trump has no plans to fire Fed Chair Powell [8].
References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/2026-fed-chair-speculation-trump-eyes-successor-to-jerome-powell/trump-hints-at-replacing-fed-chair-powell/slideshow/122559236.cms?from=mdr
[2] https://seekingalpha.com/article/4802586-three-rumors-fed-chair-powell-might-not-address-july-fomc-meeting
[3] https://www.cnbc.com/2025/07/16/trump-powell-fed-fire.html
[4] https://economictimes.indiatimes.com/markets/stocks/news/2026-fed-chair-speculation-trump-eyes-successor-to-jerome-powell/trump-hints-at-replacing-fed-chair-powell/slideshow/122559236.cms?from=mdr
[5] https://economictimes.indiatimes.com/markets/stocks/news/2026-fed-chair-speculation-trump-eyes-successor-to-jerome-powell/trump-hints-at-replacing-fed-chair-powell/slideshow/122559236.cms?from=mdr
[6] https://economictimes.indiatimes.com/markets/stocks/news/2026-fed-chair-speculation-trump-eyes-successor-to-jerome-powell/trump-hints-at-replacing-fed-chair-powell/slideshow/122559236.cms?from=mdr
[7] https://economictimes.indiatimes.com/markets/stocks/news/2026-fed-chair-speculation-trump-eyes-successor-to-jerome-powell/trump-hints-at-replacing-fed-chair-powell/slideshow/122559236.cms?from=mdr
[8] https://www.cnbc.com/2025/07/16/trump-powell-fed-fire.html
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